Skincare Products Maker Forest Cabin Jumps 27% in Hong Kong Grey Market

Skincare products maker FOREST CABIN jumped 27% in the Hong Kong grey market.

Founded in 2003, Forest Cabin spent nearly a decade without clear momentum. Its turning point came in 2012, when management pivoted toward camellia-based skincare and introduced the concept of "skincare through oils", a niche segment that was still underdeveloped in China at the time.

The launch of Camellia Essential Oil in 2014 proved decisive. The product has since ranked first in China's facial oil retail sales for 11 consecutive years, according to the company.

Data from consultancy CIC show that, based on 2024 retail sales, Forest Cabin ranked first among high-end domestic skincare brands in China and was the only local label to enter the country's top 15 high-end skincare brands overall, a list otherwise populated by international names.

Financially, the company's recent trajectory is striking. Revenue climbed from 691 million yuan ($97.75 million) in 2022 to 1.21 billion yuan in 2024, a compound annual growth rate of 32.3 percent. In the first half of 2025 alone, sales reached 1.05 billion yuan, nearly double that from a year earlier.

Profitability has improved even faster. Forest Cabin swung from a net loss of 5.93 million yuan in 2022 to a net profit of 187 million yuan in 2024.Net income for the first half rose to 182 million yuan, almost matching the prior full-year result.

Much of that profit is underpinned by unusually high margins. Camellia Essential Oil's gross margin rose from 81.7 percent in 2022 to 86.2 percent in the first half of 2025, pushing the company's overall gross margin above 82 percent. Such figures stand out in a sector where global competitors have increasingly faced margin pressure.

Yet the same model raises questions. Forest Cabin's heavy reliance on marketing relative to research and development has drawn scrutiny as it approaches investors. Sales and distribution expenses surged 100.2 percent year-on-year to 580.6 million yuan in the first half of 2025, accounting for 55.2 percent of revenue, up sharply from 40.1 percent for full-year 2024.

An investment platform under the French beauty group L'Oreal acquired about 2.75 percent of Forest Cabin in May through a fund, according to the prospectus. The stake is widely seen as an endorsement of domestic brands' growth potential, but it also highlights intensifying competition.